Key facts
- Euro area economy grew 0.4% in the second quarter of 2026.
- EU economy grew 0.5% in the second quarter of 2026.
- Growth was attributed to AI investment, government spending, and one-off factors.
- Year-on-year GDP growth in the euro area reached 1.0% in Q2 2026.
- Ireland saw the highest quarterly growth at 3.9%.
The euro zone economy demonstrated resilience in the second quarter of 2026, with seasonally adjusted GDP increasing by 0.4%, surpassing initial expectations. This growth marks an improvement from the previous quarter, when GDP remained stable. The broader European Union also saw a stronger performance, with GDP rising by 0.5% in the second quarter, up from a 0.1% increase in the first quarter.
Key drivers behind this unexpected expansion include increased investment in artificial intelligence technologies, supportive government spending, and several one-off factors. These positive influences helped to counteract persistent challenges such as high energy costs and the ongoing conflict in the Middle East, which have weighed on economic activity.
On a year-on-year basis, the euro area's GDP increased by 1.0% in the second quarter of 2026, a notable rise from the 0.5% growth recorded in the preceding quarter. Similarly, the EU's year-on-year growth accelerated to 1.2% from 0.8% in the first quarter.
Among individual member states with available data, Ireland reported the most significant quarterly increase in GDP, surging by 3.9%. Lithuania followed with a 1.7% rise, and Sweden recorded a 1.4% increase. Conversely, Belgium and Austria experienced no growth, with their GDP remaining flat at 0.0% for the quarter.
These preliminary estimates are based on incomplete data and are subject to revision. Eurostat is scheduled to release further estimates on August 14, 2026.